Social/Economic/Political
Occupied Palestine/Israel: Jerusalem Domestic Service announces Israel and Jordan signed memorandum on joint responsibility for new Arab bank in Nablus. Agreement is reached after intervention by U.S. Sec. of State Shultz in secret talks in London (FBIS 10/2). Israeli Trade Minister Ariel Sharon is fined by Israeli High Court of Justice for illegally appointing two trade attaches to New York and Bonn (JP 10/3).
Other Countries: Washington Post reports Reagan administration launched secret and deliberate campaign of deception aimed at convincing Qadhdhafi he was about to be attacked by U.S. bombers and ousted in coup. Plan was proposed 8/14 in memo by National Security Adviser Admiral John Poindexter. Pres. Reagan and government spokesman later deny planting false reports; Shultz justifies using press to scare Qadhdhafi (NYT 10/3).
Military Action
Arab World: Palestinian sources report mortar battle at Rashidiyyah camp (population 20,000) between Amal and Palestinians (MEI 10/12).